What was the total value of deferred tax assets for Ben Jerrys as of December 31, 2024?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| | As of December 31, | | |---|---|---| | | 2023 | 2022 | | | | | | Deferred tax assets: | | | | Fixed assets | $ 115 | $ 85 | | Lease liabilities | 76 | 99 | | Deferred revenue | 41 | 56 | | Other accruals | 10 | 10 | | State NOL, net | 244 | 286 | | Deferred revenue state taxes | 6 | 5 | | Federal NOL carryforward | - | 189 | | Total deferred tax assets | $ 492 | $ 730 | | | | | | Deferred tax liabilities: | | | | Intangible assets | $ (143) | $ (141) | | Lease assets | (73) | (89) | | Total deferred tax liabilities | $ (216) | $ (230) | | | | | | Net deferred tax assets | $ 276 | $ 500 | Notes to Consolidated Financial Statements
December 31, 2024 and 2023
(Dollars in Thousands)
Significant components of the Company's deferred tax assets and liabilities are as follows:
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Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, as of December 31, 2024, the total deferred tax assets were $529,000. The FDD also provides a breakdown of the components contributing to this total. These include fixed assets valued at $136,000, lease liabilities at $61,000, deferred revenue at $76,000, other accruals at $19,000, state net operating losses (NOL) at $224,000, and deferred revenue state taxes at $13,000.
Deferred tax assets typically arise when a company has overpaid taxes or has tax deductions or credits that can be used to reduce future tax obligations. For a Ben Jerrys franchisee, understanding these deferred tax assets is important because it reflects the company's financial strategies and tax planning. It also provides insight into how the company manages its tax liabilities and potentially utilizes tax benefits to improve its financial position.
It's worth noting that deferred tax assets are subject to valuation allowances, which can reduce the reported value if it is deemed more likely than not that some or all of the deferred tax assets will not be realized. However, the provided excerpt does not specify whether a valuation allowance was applied. Prospective franchisees may want to inquire about the company's policies on valuation allowances and the potential impact on the realization of deferred tax assets. Understanding the nature and recoverability of these assets can help franchisees assess the overall financial health and stability of Ben Jerrys.